Transparent Models

Fakurian Design/Unsplash

An internet search for 'property agreement format' today results in pages of links, all leading to different formats for the same basic transaction - a property sale. 

Thankfully, this hypermarket beating inventory of docs on offer could soon become redundant. 

The Backstory

For eons, builders and agents have used arbitrary, biased agreements that do not place customers at an equal platform with them, violating Articles 14, 15, 21 of the Constitution. 

Indian home buyers are not new to cases of deliberate delays in property handovers. 

And when consumers lodge complaints, the police often don't act, citing clauses from such lopsided sale agreements. 

It's Time To Agree

Yesterday, the Supreme Court issued a notice to the Centre, asking it to frame model agreements for all builder-buyer and agent-buyer transactions, to usher in more transparency in the real estate sector.

These universal agreements will also conform to the Real Estate (Regulation and Development) Act, 2016 to ensure protection for consumers.

Is It A First?

No. In fact the housing ministry had earlier issued a model builder-buyer agreement for residential projects, but no state adopted it fully. 

Only Union Territories have so far notified the agreement in complete alignment with the central rules.

While homebuyers have welcomed the move by the apex court, lawyers are figuring out how numerous state specific laws make such a universal agreement difficult to achieve.